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tv   Your World With Neil Cavuto  FOX News  April 12, 2010 4:00pm-4:59pm EDT

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have a great day. the dow does it. why are folks getting antsy it can't keep doing it? wall them the wow jones industrial slicing through the 11 now milestone like a knife through pure profit butter. it's hot of late, scoring nearly 10% of an uptick in two weeks, 70% from the lows last march. good news today but at "fox business," if they're right, it's because the sobering study that reveals tax rates could be climbing and for more than just a few. here to stem cell spell -- spell it out, the star of fox business news, which if you don't get ... >> demand it! >> the stud where purports to show if you want deficit down,
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taxes go up. >> to a certain degree, you raise the upper rate to 70%. >> the top to 78? >> we're at 34. >> 39.6. >> i'm not convinced they'll go that way. we have -- unemployment is high but this is pretty sobering news if you put your money in the markets. we're going to get higher taxes, even if they don't raise the upper rate, higher gains taxes. >> show that again because i want to bring this to your attention. if everyone's rates were raised. that's where you go. but you don't think that's in the immediate cards. >> maybe not. but take this out because i think congress will be under pressure, more republicans in congress at the end of this year, too, and they may have the house and senate changing the dynamic. you take that out, we'll have
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higher taxes for healthcare, higher taxes on the state and local levels and not only that, you're going to have rate hikes. think about it right now. >> interest rates. >> interest rates. the fed fund rates at essentially zero. banks borrowing for nothing but think about which a that does to treasury. 3%, almost nothing. why put your money in a fixed income investment, a cd, bond, treasury bill? you have to put it in the stock market. that has to change at some point. it's unprecedented. two years of zero percent fed funds. how can that happen? >> a ten-year loan, which is a lot of mortgage instruments that, moves up and you have 5 plus percent mortgages. you remember when mortgages were more but a lot of folks have gotten used to that. >> then what? that has an impact on the
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economy as rates go up and people borrow less t filters through the economy. when you change the interest rate die dynamic for the bonds and all that, people start saying, well, maybe it's too risky to put my money in a stock market which is reflective of low interest rates and not a great economy. the market has gone to 11,000 from a low of 6 in march of 2009. basically the economy has been pretty lousy during that time. so -- >> so it's forecasting is over. >> i don't think this market reflects like a booming economy. if you think the economy will get better, most people, in the "wall street journal" today, they point out it will get moderately better yoo-hoo not in the double dip crowd. >> i don't know. a lot has to happen before a double dip. they put this much liquidity in
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the system. the bailout money, the fiscal stimulus, if we have a double dip now, that's -- that would be unprecedented. >> neil: and game over. >> bad. >> charles, thank you. >> the guest here to say sorry, charlie, all of this higher tax talk already built into the market and scott martin says the market doesn't appear to mind. scott says it's going higher from here. scott, good to have glue thanks for having me. >> i would buy part of what you're saying, that the market is prepared for the 39.6% top rate. might not happen but that's what they're prepared president obama. i don't think they're prepared for 78% or something higher than that. you do. >> well, neil, 78% is a lot. don't get me wrong but there's steps there. we're not going to wake up tomorrow and be up there.
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this is going to be something that's progressive in nature. so neil, what you have to do is look at the market where it is. even sense obama has been president, we're showing good things and it will continue near term. this is something that's further off in the future and something that did need to happen. >> neil: what if it's not further off in the future and the reality hits us sooner and just to keep the deficits down to what has been an historical no, norm of 3%, you could cut spending. that's not happening. the alternative is hike taxes and republicans are trying to -- democrats tried to address spending and -- >> you can't cut spending to get out of recession but -- >> we're piling -- neil, getting our financial house in order will keep interest rates down, which is one of the biggest fears the stock market has
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today. >> neil: aloof you darrellly but how is spending trillions of dollars getting our financial house in order? >> raising taxes helps reduce the deficit and helps with interest rates. that helps with the overall housing market. >> neil: what is a top rate for you? >> neil, i think for me at least for the market going forward, if you're looking into the 70s for how the market has behaved it year and last, i don't think it's in the cards. it could come faster than we think but looking back to the election, even, we already new into this was coming. >> neil: here's where i part company with you. i think we factored in higher rates. thing we factored in higher tax rates. i don't think we factored in what could be happening, much higher interest rates furnishings the level we're enjoying and spoiled to enjoy and much higher tax rates. substantially higher than we've been expecting. you surprise the market with something like that, katie bar the door.
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>> well, neil, interest rate markets is a free market. i guess it depends on how you define much higher. 4% versus 6% like you talked about doesn't seem too bad historically. it's a 50% move but if you can get mortgages at 7, 8%, that sound nice to me. >> neil: not for people use today 4 something, 5 something. >> guess what, who are they? who can get a mortgage now? fleas -- there's not a demand pour loans. >> neil: that's hardly a saving grace but we'll see. it's a classic argument in the middle of a nice run here. scott martin, good seeing you. >> you too. >> neil: you got off your taxes done by april 15th but that doesn't mean congress does. democratic leaders will miss the mid april deadline and they may
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not take it up this year. richard goodsteen doesn't see a double standard. they expect us to have our financial house in order. you get within a month of that yourself. >> yeah, i try. the fact is, neil, we didn't have a budget law until 1974 so it's not like it's etched in stone about getting a budget by april 15th. you've seen in the time that you've been on the air congress routinely miss these deadlines in 2003 and 2005. >> neil: republican democrats -- i'm saying that at a time when they're hot to trot to penalize americans who are late, at least why don't you try to do the same? >> the only deadline that's analogous is the debt ceiling with the u.s. government assured it would meet obligations. there was a party line vote on that and democrats stepped up
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and it wasn't popular. but they stepped up and said we have to rate the debt ceiling making us good on the obligations. >> neil: just like republicans with president bush. each looks after their own interest. >> the fact is, it's no surprise that politicians look after they're own interests but i know you don't want this political, democrats have a pretty good record to run on, pay as you go, cbo scoring -- >> neil: wait a minute, pay as you go, someone put out a statement ear we're going on a diet but they don't. i'm impressed when they say i'm going on a diet but i have to put the pedal to the metal and go on the diet. pay as you go is nice. to commit yourself to only paying what you have with the money coming in.
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but they've done everything but, right? >> the evidence the democrats are good for it and prepared to step away from the doughnut counter is the discussion you had. who is prepared to do something about entitlement? >> neil: you just said they're proving it by example. the deficit is doubled. i'm not saying republicans -- we're now spending and creating deficits double what we left. you have a goal to say we're going to address entitlements or goals to say we're going to short medicare, even though the way you did it was by hiking taxes and discretionary taxes to do it. but that is hardly will power. i mean, you are just doing more of the same. >> what is will power was the 2008 campaign, john mccain, when asked by you,
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what do you do about the deficit, i tackle medicare, medication and social security. john mccain says don't take one dollar out of medicare. that was not a stand up position. i think democrats who did take standup position and -- >> neil: i did interview him and what he was saying, if this is something that is supposed to shore up medicare, the healthcare bill that became law, it's a funny way of doing it because what we have essentially done is add taxes just to keep it on life support. that's what he was saying. >> there was a -- look, every economist says republicans, democrats, left, right we tackle the deficit by some tax increases and cutting entitlements. that's what the healthcare bill did. >> neil: i just -- you're a smart guy. i want to be clear you're not saying this. that democrats with pay as you go and some other things, even in the face of deficits that
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doubled, are any great fiscal proprietors or any bit more resolute about addressing this issue because cry as they might about republican spending, and therm justified, they're like a drunk blackjack player doubling down. >> no. >> have you looked at the numbers? >> if you didn't have the calamity that barack obama inherited, there's no lentil massey. with earmarks, under gingrich, which ballooned. if you take out the stimulus and the calamity, the democrat's record is formidable. >> neil: they're not doing it. we can respectfully disagree. always good having you. >> less than one hour until the white house meeting resumes. it's a goal to get union membership up. a top union leader calling his
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members. >> on the white workers? i think we got some real problems. i expect a lot of time in wisconsin and places where i have heard some of the most antiimmigrant sentiments around. it's also -- this is where you get the black workers first it's so [ bleep ] racist.
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everyone's talking about this. a union leader under fire for controversial comments about his members. >> on the white workers, i think we got some real problems. i expect a lot of time in wisconsin and places like that where i have heard some of the most anti-immigrant sentiments
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around. it's also -- where you get the black workers first it's so [ bleep ] rabidly racist until black people get scared. they don't just mean you. so you can organize them quicker, like look at what's there. >> jerry hudson, service employees international union. he provide add statement. with us, reaction from tea party activist kevin jackson. what did you make of that? >> he managed to sum up the democratic and a elettist position by saying the blacks are stupid and white are racist. he showcased how the union feels about their black membership and managed to demonize the white members for one reason, they don't want to capitulate to
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immigration reform, which is nothing more than a euphemism for amnesty. >> to that point, this is later on. >> a significant worker opposition to comprehensive immigration reform. it doesn't take a whole lot to argue at least african-american workers to another place. it doesn't take a lot. >> the comment there is that black people are stupid and the unions have gotten to the point they can manage the black workers. the problem is, he can't manage the white workers who understand that if they do allow this immigration reform, which i believe is coming from on high, the union elite from the administration that says let's let illegal immigration occur and let amnesty occur. the black workers he says are too stupid to realize it will hurt and the white workers
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realize it because if you bring in labor t will affect labor here so he has to demonize white workers. what gets me is the ease in which he makes these comments. that people would think this is something that wouldn't be said by a black man or a union person who is supposedly for the down trodden but he said is with absolute and utter ease. >> he disputes that. as you heard we tried to get him on the show. he did provide a statement late in the day. it's important. did it's a fact racism exists and represents a challenge to advancing policy. rather than engage in serious debates, this country must have about jobs and economy and making life better for working people, conservative news outlets would like to parch my words to create a false
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impression of where i stand. let me correct this picture which could be viewed by watching the c-span video. i neared said nor believe white union members are raysist. as someone to spent my adult like organizing workers, i believe racism weakens our cause. i should point out we didn't edit anything or splice anything or attach quotes at points in the conversation. we playeded the whole chunk. what are your thoughts? >> you didn't have to. he said it point blank that it was easy to manage. effectively ease to manage the blacks. it's the policy of the democrats and when blacks like myself, conservative blacks go over the plantation and do what they had to ken in st. louis, a beat down.
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if they can't do it physically they do it verbally. he's saying we have the blacks in check. >> that's, bud y we'll have more after this. my name is borat, i like you. this is my house, enter, please. p with a flat tire... anncr vo: ...find a nearby tow truck or gas station... anncr vo: emergency services... anncr vo: ...collect accident information. anncr vo: or just watch some fun videos. anncr vo: it's so easy, a caveman can do it. caveman: unbelievable... caveman: where's my coat? it was suede with the fringe. vo: download the glovebox app free at
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the earnings for the first quarter starts with alcoa, usually kicking off the parade. today kicking off at expected, earning 10 cents a share. sales are okay. not great but okay. so the first one out the gate comes at pretty much as focus expected. a lot more as the earnings parade continues. america have most beautiful womens in world, for example, liza ma nellie and elizabeth
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taylor and center for democracy and porno, i like. >> borat isn't there but the president of kazakhstan is and met with the president of the united states today. all 47 world leaders are gathering at the white house for the nuclear summit. one tiny problem, the leader of the country the biggest nuclear target not there. israel president benjamin netanyahu fearing it would turn into an attack on israel. the former deputy assistant secretary of defense under ronald reagan. kt, i wonder if this is redecide all damage from netanyahu's team. >> when he didn't get the photo op or dinner. >> his deputy is there. >> he had to send somebody. but he probably worried he
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woulding ambushed since the topic is nuclear weapons. netanyahu does not want the conversation to be about dozen israel weapons. >> do you think the united states would condone that? they're talking with securing their own nuclear devices and iningredients in a nuclear weapon. where does the conversation go? the worry is nuclear weapons, dirty bombs in the hands of terrorists coming to the new york subways. the conversation should also be about iran and their quest for nuclear weapons. >> neil: iran's leader is there, is he standing out? >> he's not a signatory to the nonproliferation treaty.
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>> those two are no nuts. >> they're rogue states. >> israel isn't. >> no, and israel -- but the problem is if israel shows up and the conversation becomes israel bashing and israel, what they have in the middle east -- israel is thought to have nuclear weapons but never admitted it and never had anything stolen from israel, israel has secured whatever it has and israel only would use them as a deterrent, if another country attacked israel. israel was worried if they showed up, the conference wouldn't be but nuclear materials, it would be a israel instead of iran. >> israel has been abandoned. >> we had their back. >> i read the israeli press and they don't feel that way now. >> president obama's approval there is 4%. >> neil: 4%? >> has any american president
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been that low? >> not that i know. >> neil: what about jimmy carted carter? >> that shows you israel is nervous that is america doesn't have its back. >> neil: do you think we do? >> no. i think there's a split in the u.s.-israeli relationship. >> neil: you said that after the snit. >> it will get worse, if israel feels cornered they'll think about a talk on iran's nuclear facility. >> kt, thank you. tax refunds at an all-time high and the president saying his stimulus made it possible. the insurance commissioner who might have found out how to stop the healthcare law without filing a single lawsuit.
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♪ ♪ i got troubles, oh ♪ but not today ♪ 'cause they're gonna wash away ♪ ♪ this old heart
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♪ gonna take them away [ quacks ] the president a taking credit for tax refunds hitting a all-time high saying stimulus is the reason but roni deutsche isn't buying it. president taking a bow for that. you don't think he deserves it? i disagree. an argument can be made tax credits are helping refund checks increase. but look at the history. each and every year they increase by what, $400 to $600. i believe there are three or significant reasons why refund checks have increased.
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unemployment and multigenerational households. we have to look at taxpayers and the fact they're getting it wrong on w 4th and the tax industry being unregulated. >> why -- when i hear a $3,000 figure that's big. >> of course it's big. the average taxpayer, 70% are attracted to getting the $3,000 refund check. what do they think, they're not paying taxes to the i.r.s.? when you ask how much due pay to the i.r.s., i didn't pay. i got a $3,000 refund czech. isn't that great. >> neil: what do you tell them? look at the w4 because taxpayers are getting it wrong. people claiming zero actually qualify for a 1, 2, 3, 45, mean $250 every month.
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>> but 30% to do this willingly do it because its for the savings they say. what do you say? >> remember 70% get refunds because they love the fat check in april. they feel good to get the money and blow it, spend it, going on vacation. again -- >> neil: is that what most do? >> absolutely, the majority of people i speak to blow that money, whether it's a good time, going on vacation, very few actually use that money -- >> neil: what's the most extravagant thing? >> party in vegas and have a great 24 hours. >> neil: so my brother was wise to take that approach. you're saying don't be thankful to the government, wonder why you've given them a free loan. >> i'm grateful you bring that up. the i.r.s. loves giving you a refund because they're keeping your hard-earned money, your overpaid money you sent to them from free.
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i.r.s. loves our current system because they're not paying you interest and you're learning nothing about taxes. which means you generally overpay. >> neil: do you buy the study that says tax rates will go up a lot? >> yes, so much your head will spin. >> roni deutsche, imagine you're blunt it your customers. >> yes, i am. >> you want to know how much you owe you uncle sam? plug in how much you make and see how much the government will take. also find out how much of your hard-earned cash is going to government programs. it's all your money, part of a special series all week on fox. we have another equation, how much do you make? give it all to the government. another shortcut. who needs to sue when you can say no. a commissioner taking action
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against the healthcare law. he says georgia won't participate in the so called insurance pool for high risk people. the commissioner dashing on a letter to kathleen sebelius. he joins me now. very good to have you, sir. >> good to be here. >> did the secretary respond to that letter? >> we have not heard back. we just sent it today. i'm sure we'll hear back from her soon. >> the role of the government -- i've heard the approach is if you don't play along, we'll take over what you do federally. >> the federal government could create a health pool but this is a federal law a federal program and they're willing to stay to implement it. this is phase one of the federal healthcare law. it's supposed to be in place by july 1 and i'm not creating a
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high risk pool that will burden taxpayers. there's only $5 billion for the next 3 1/2 years for all of america. what happens if it runs out and costs are higher than they give us? are we going to come to our treasury? we're laying off school teachers, laying off police officers in georgia. we can't take another unfunded mandate from washington and i'm not subjecting our treasury co-to. >> so you're not even going by way of the courts. you're refuse to go participate in something that is a given in this healthcare law, that is states help fund this high risk pool. you want no part of it. the high risk pools are implemented in state after state. can you legally do what you are doing? >> we can, georgia is a sovereign state. we don't have to do it. they're asking us --
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>> neil: i don't know what the truth and you're running for governor, they say you're scoring political points but you do have to do it. what's the deal? >> i disagree. we don't have to to do it. she asked if we would create it pool. she asked us to do it. there's no retirement that we have to do -- requirement we have to do it. the federal government can if they want but we don't have to do it as a sovereign entity. we're not going to jeopardize our state treasury. the cost for georgia alone. if you have 15,000 people, the cost of georgia alone would be a billed over -- billion dollars over the next 3 1/2 years. we can't pay that. i don't trust the federal government to take care of it. >> we'll watch it closely. thank you very much. speaking of georgia, we're going to be in the state capital in atlanta this thursday
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covering a tax day protest rally april 15th, 4:00 p.m. and at 6:00 p.m. on fox bus. we have marco rubio, jenny thomas, the wife of supreme court justice clarence thomas. the capital of the state that is increasingly looking like a swing state. healthcare law will decide who gets to be the new supreme court justice? we report, you judge. if you can't beat the tea partiers, infiltrate and discredit them? the sneaky tactics some are calling down right dirty.
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get ready for a fight or the supreme court justice. many predict the battle will be good for democrats looking to take the focus away from healthcare. michael barone, what could happen here? >> questions could come up about
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the constitutionality much the heart healthcare legislation, you have 14 attorneys general suing and objecting to the individual mandate to buy health insurance. we've never had a federal law requiring to you buy a commercial product and you could ask a nominee about that issue specifically and gee, can the government command to you buy breakfast cereal, to buy commercial products? how is this constitutional? i could see other issues coming up under the row v -- rowe v. wade. people who favor abortion rights made a litmus test for supreme court nominees, attacking republican nominees as for possibly being against t rowe v. wade says there's privacy protected by the constitution, they don't specific which amendment, that protects
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individuals from government interference in having an abortion. what about a c-section, about a hip replace. does rowe v. wade apply to these or can the government get in with standards and medicaid and medicare formulas and insurance regulations and change that? where does the federal government get the power to do that. >> neil: that's a very good point but another sonya sotomayor deal where her views are being interpretive of the constitution come into play, but on a bigger issue, than an issue that may be democrats were hoping to turn focus away from the healthcare discussion, it could be renewed all over again. >> it could be. in 2006, the supreme court came down with a decision in a case called gonzalez versus oregon
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and held the federal government couldn't limit dignity laws for doctors to administer lethal drugs for people to end their lives. if the government can't affect state laws on lethal drug administration what, about nonlegal? are they pursuant to the insurance exchanges and other details? are they going to stand up under constitutional scrutiny? there's serious constitutional scholars raising questions and their fair questions to put to a supreme court nominee. most nominees i suspect won't give straight answers to that but say as ruth bader ginsburg did in 1993, i don't want to prejudge case ins advantage. but the high visibility of supreme court nominee hearings before the senate judiciary committee will give members of the senate an opportunity to ask these questions and to raise
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them. and for voters out there to think about whether or not this healthcare bill passes constitutional muster. >> good stuff. michael, thank you very much. >> thank you, neil. >> neil: the wife of supreme court justice clarence thomas is speaking at a tax day rally this thursday but first she'll speak with me at my live coverage of this rally. also marco rubio shall the republican running for u.s. senate in florida and many others, don't miss it, april 15th. one group trying to down the tea partier and you won't believe how they plan to do it. [ advisor 1 ] i have clients say
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the president just sitting down with china's leader, talking at length about iran's
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nuclear ambitions and agreeing to direct representatives to work on a resolution. the u.s. wants to see the resolution this spring but with china holding u.s. debt, how much pull does the president have to force the issue? a republican congressman says not much. >> how are you? >> fine. i guess we feel beholding to china and walk on egg shells and beg, ca joel, to see if they will go along because they hold so much of our debt. what dow do you make of that. >> it's a death threat to the national security. you see that with representatives of the administration go to china and talk about human rights in a muted fashion in at all. a problem in getting sanctions that will doinging do something. we see an inversion of the
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strategy that was successful to defeat the soviet union by the reagan administration. chinese economy is on the rise rather than our own and our indebtedness makes it hard to advance the cause of little bit. >> liberty. >> we would like them to go along but companies have challenged them, minus google, that's it. >> there seems to be prevailing sense, especially among europeans, it's over for americans, i disagree. our liberty precedes security and prosperity. chinese believe prosperity comes from the government and liberty is a threat. we have to get our fiscal house in order and stop making ourselves easy prey for deficits and debts for others po buy and hold against us and we have to recognize communist china as a
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threat and rival againsts united states that we'll have to address for generations to come. these are fundamental blocks to be put forward as principles to guide public policy. we continue to see a large segment of democrats and republicans that seem to forget this. >> why can't we call their bluff and say if you want to invest elsewhere, go ahead? >> the reason we can't is because they have actually through the normalization of trade with china and massive trade deficit, use of outsourcing of american jobs and the accumulation of debt and appetite for government spending we have to get our house in order. >> neil: good luck on that. you and i have chatted about that before. in the meantime, this soap ownership ration right? >> yeah, we chat about it but i have ultimate faith that eventually the american people
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continue to under the threat and continue to go toward a path to get security and prosperity back. >> neil: let us hope you're right. if you can't shut 'em up, dumb 'em down. antitea party activists planning to infiltrate.
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neil: if you want to beat it, crash it. a group called, pushing to dismantle the tea party movement, looking to infiltrate sabotage events using slew of picked up tactics. what are the tactics? mark from the "washington examiner" has been following this. what do they plan to do? >> the purpose, basically, neil is to make the tea party folks look as racist and homophobic and perhaps even as violent as possible. obvious, it's all a fantasy that the folks on the left are creating but that's their
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purpose. >> how will they do that, though? what are they planning on carrying out? >> it's an interesting situation where we have some folks on the left, notably the jason levin, the fellow behind crash the, encouraging folks and claiming to have been infiltrating various tea party groups across the country. and promising that they're going to go to tea party rallies with signs that are stupidly written, or that contain racist slogans, those kind of things. >> neil: but they will write them and put them in to tea partiers' hands? >> no, they'll carry them. >> neil: carry them themselves? >> absolutely. they're going to pose as tea party folks in an attempt to discredit tea party folks. >> neil: all right, those are the signs -- >> it's a false flag operation. >> neil: i've seen how it works. those are the signs that get the attention and the signs that the media focuses on. unavoidable we'll see all
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that again? >> that was exactly the point of my column this morning in the "washington examiner" was, you know, folks in the mainstream media, journalists like myself and elsewhere, need to be on the look-out for this. it will be interesting to see if they actually filter out this stuff or become unwitting dupes of it. i hope the former, not the latter. >> neil: i don't know, the rallies i've seen and myself, the errant crazie crazies that all the focus even when later proven they're not part of the movement. whereas the errant crazies or those that would have decapitated head of george bush during the war, that barely got a mention or anyone offended in the media when they fought. it's weird. >> the double standard in the mainstream media is it's not anything new. and frankly, i am wondering
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just how effective it is in this period when people are so overwhelmingly upset with what is going on with washington. no longer just conservatives, conservative, moderate, independent, people in the middle. a lot of folks who previously didn't talk to each other a whole lot are talking to each other a lot and working together. i think they will have a big impact this november. >> neil: well, you have been pretty right on this stuff all along, mark. thank you very much. we'll watch closely. hope to see it firsthand in atlanta. by the way, i will be live this thursday at tax day protest outside the capitol in georgia, atlanta, first at 4:00 p.m. fox news and 6:00 p.m. on fox business. if you don't get -- >> demand it. >> getting better. getting better. anyway, one of my special guests are marco rubio, the republican running for senate in florida. the wife of supreme court justice clarenho


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